This article provides information on how Value Added Tax (VAT) at a standard rate of 20% is applied to subscription fees for UK-based customers. Learn about the invoicing process and how it affects billing.
We adhere to tax regulations, including charging VAT to UK-based customers. This impacts billing for UK customers, who will receive two invoices – one system-generated and one UK VAT Invoice sent within 7 days of the automated USD invoice. For questions or concerns regarding VAT, contact customer support for assistance.
VAT is a consumption tax levied on goods and services in the United Kingdom. The standard VAT rate in the UK is 20%. As a service provider with customers in the UK, we are required to charge VAT on subscription fees for UK-based customers.
Billing and Invoicing Process
All plans are billed in USD. UK customers will receive two invoices:
- System-generated invoice: This invoice is created by our billing system and reflects the subscription fee in USD.
- UK VAT Invoice: This invoice will be sent within 7 days of the automated USD invoice. It includes the total amount excluding VAT and the VAT amount in GBP, calculated using HMRC's monthly USD:GBP exchange rates.
The UK VAT Invoice will display a breakdown of the subscription fee and the additional 20% VAT charges. VAT amounts may change if the UK government adjusts the rate in the future.
For VAT-registered businesses in the UK, input tax can potentially be claimed back on VAT paid for subscriptions, subject to certain conditions. Consult an accountant or tax advisor for guidance on individual circumstances.